Dayton asks for low-interest loans in wake of FEMA aid denial

Following the denial of appeal for aid from the Federal Emergency Management Agency to repair home and business with flood and other June storm damage, Gov. Mark Dayton has moved on to asking for loans from the Small Business Administration. Dayton is seeking loans to repair damage done in St. Louis, Carlton and Pine and adjoining counties, and the Fond du Lac Band of Lake Superior Chippewa.

Following the denial of appeal for aid from the Federal Emergency Management Agency to repair home and business with flood and other June storm damage, Gov. Mark Dayton has moved on to asking for loans from the Small Business Administration. Dayton is seeking loans to repair damage done in St. Louis, Carlton and Pine and adjoining counties, and the Fond du Lac Band of Lake Superior Chippewa.

Governor Dayton ordered state officials to begin preparing an appeal after learning that FEMA has denied federal aid to individual victims of last month's flooding. The agency is providing money for 13 counties to rebuild roads and make other repairs. But money for individual homeowners and businesses was denied.

Gov. Mark Dayton says he's heard that FEMA's regional office determined Minnesotans did qualify for individual flood aid, but was overruled by Washington, likely for budgetary reasons. Dayton says he wants to find out more. The state is appealing this week's decision denying assistance payments to individual homeowners and businesses hit by last month's floods.

The U.S. Small Business Administration has announced it is making low-interest disaster loans available to help flood victims – including homeowners – make repairs and replace damaged property, WDIO reports. FEMA has denied Minnesota's request for individual disaster aid, although the state is appealing. The SBA loans create another option for people, officials say.

Gov. Mark Dayton's request for a disaster declaration in Carlton, Pine and St. Louis counties, as well as the Fond du Lac Band of Lake Superior Chippewa, following June's floods, was granted Friday by the Small Business Administration. With the approval, affected homeowners, renters, businesses and not-for-profit organizations can apply for low-interest loans up to $200,000.

One of the state officials who accompanied federal inspectors on their tour of flood damage says Minnesota will have no trouble passing the $7.1 million threshold to qualify for aid from FEMA. A state Senator from Duluth says the feds typically cover about three-fourths of the cost of repairs to infrastructure, with state and local governments paying the rest.

FEMA officials were on Minnesota's North Shore Wednesday to assess the damage caused by last week's Knife River flooding, which is estimated to be between $1 million to $2 million. FEMA is expected to tour flood damage Thursday in Duluth, as well as affected areas in greater St. Louis and Carlton Counties.

The Federal Emergency Management Agency denied an appeal Friday from Gov. Mark Dayton for aid for individuals and businesses affected by floods in northeastern Minnesota in June. Dayton said he was "disappointed" by FEMA's ruling and that he'll ask the state legislature for an estimated $7.4 million in assistance in an upcoming special session.